Goudron well GY-666 reaches total depth, says Leni

7/3/2014

Goudron well GY-666 reaches total depth, says Leni

LONDON -- Leni Gas & Oil (LGO) reported that well GY-666 has been successfully drilled to a total depth of 3,357 ft measured depth and that analysis of the electric logs has indicated the presence of a total of at least 394 ft of net oil pay; with 185 ft of net oil pay in the Goudron Sandstone, as previously stated, and a further 209 ft of net oil pay in the Gros Morne Sandstone.

Neil Ritson, the Company's CEO, commented: "The log characteristics and pressures encountered while drilling indicate that well GY-666 should be another excellent Gros Morne producer and we look forward to completing it, and existing well GY-665, when the rig concludes the four well drilling campaign on this pad."

A further 38 ft of net gas sand was encountered in this well below the Goudron Sandstone and above the oil zone in the Gros Morne and at similar depths to that observed in nearby well, GY-665. Whilst of no immediate commercial significance the presence of gas provides additional value for future exploitation.

A 7-inch casing will now be run to TD in the well and cemented in place. Further analysis will also be conducted on the Lower Cruse interval which is present at a depth of approximately 3,230 ft MD, but which has so far not been fully analyzed. Based on the data available it is planned to complete the well as a Gros Morne oil production well.

LGO intends to continue with the planned program of 30 new development wells including at least five further wells with Well Services Rig 20. The mobilisation of a second rig is still planned when a suitable unit has been identified and contracts negotiated.

Following a review of the electric logs for the Goudron Sandstone interval in GY-665 the net pay previously stated on 17 June 2014 has been revised upwards from 159 ft to 195 ft. The interpretation of the GY-665 logs has been improved through the running of different down-hole tools in GY-666. The table below has been revised to reflect this change.